Bull run continues for Reliance, Adani Group companies despite market correction: Report

The benchmark indices have fallen around 9 percent since the beginning of the current calendar year (2022, or CY22) and nearly 15 percent from its all-time high in October last year.

However, the bull run continues unabated for two of India’s biggest family-owned business groups — Mukesh Ambani and Adani, a report by Business Standard stated. The flagship companies of these two business groups continue to see a rise in their share price and market capitalisation (m-cap), even as the rest of India Inc is under pressure from domestic and global macroeconomic headwinds, added the report.

BS highlighted that the combined m-cap of the six Adani Group companies is up 39 percent year-to-date (YTD) to ₹13.38 lakh crore from ₹9.62 lakh crore at the end of December 2021. Five of the six Adani Group companies saw a rise in their m-cap in the past six months, led by Adani Power, up 163.5 percent YTD, followed by Adani Green, up 47.2 percent whereas Adani Ports and Special Economic Zone is the only outlier — down 4.8 percent YTD, it informed.

Including Adani Wilmar, which listed on the bourses in February, Adani Group companies’ combined m-cap is up 47 percent YTD to ₹14.13 lakh crore, said BS.

Meanwhile, in the same period, the combined m-cap of the seven listed companies of the Mukesh Ambani group has risen 9 percent YTD to ₹17.81 lakh crore from ₹16.33 lakh crore at the end of December 2021, noted BS. The group flagship — Reliance Industries rose 9.6 percent YTD with an m-cap of ₹17.56 lakh crore, up ₹16.01 lakh crore at the end of December 2021.

In contrast, eight of the top 10 family-owned business groups saw a decline in their group m-cap in the past six months, in line with the broader market, added BS.

For example, Tata Group — which led the league table with a group m-cap of ₹21.44 lakh crore, saw an 8.2 percent decline in its m-cap YTD.